CPP Reserve Fund Grows to $92.5 Billion

INVESTMENTS EARN $2.2 BILLION IN FISCAL THIRD QUARTER

The CPP Investment Board announced today that for the three months ending December 31, 2005, assets in the CPP reserve fund earned $2.2 billion, producing a rate of return of 2.4 per cent for the quarter. The CPP reserve fund now stands at $92.5 billion.

During the nine months ending December 31, 2005, assets in the CPP reserve fund earned $9.2 billion producing a fiscal year-to-date rate of return of 10.9 per cent.

At December 31, 2005, the CPP reserve fund consisted of 56.6 per cent ($52.4 billion) of publicly traded stocks, 29.7 per cent ($27.4 billion) of government bonds, 8.4 per cent ($7.7 billion) of real return assets, 4.3 per cent ($4 billion) of private equity and 1 per cent ($960 million) in cash and money market securities.

"We are continuing to diversify the portfolio by investing in real estate, private equity and real return bonds," said David Denison, President and CEO, CPP Investment Board. "One of our notable recent transactions is a $660 million investment in two major shopping centres that will complement the Canadian office properties in the real estate portfolio. Overall, our real estate holdings now total $4 billion."

Based on actuarial projections, CPP contributions are expected to exceed benefits paid until 2022, providing a 16-year period before a portion of the investment income from the CPP reserve fund is needed to help pay CPP benefits.

CPP Investment Board
The CPP Investment Board invests the funds not needed by the Canada Pension Plan to pay current benefits. With a mandate from the federal and provincial governments, the CPP Investment Board is accountable to Parliament, to the federal and provincial finance ministers who serve as the stewards of the CPP and to 16 million contributors and beneficiaries. Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments. Its fiscal year is from April 1 to March 31. For more information about the CPP Investment Board, visit www.cppib.ca.